Summer fuel demand hopes support prices
Higherforlonger US interest rates seen limiting gains
OPEC meets on June 2 to set output policy

LONDON, May 28 Reuters Global oil prices steadied on Tuesday as the prospect of OPEC maintaining oil supply curbs at its June 2 meeting and hopes of strong U.S. summer fuel demand balanced concern about higherforlonger U.S. interest rates.

On Monday, oil rose over 1 in muted trade owing to public holidays in Britain and the U.States, with hopes of strong fuel demand with the start of the U.S. summer driving and vacation season providing support.

The July contract for Brent, the global benchmark, rose 12 cents, or 0.1, to 83.22 a barrel by 1155 GMT. U.S. West Texas Intermediate WTI crude was at 78.79, up 1.07, or 1.4, from Friday39;s close, having traded through a U.S. holiday to mark Memorial Day without a settlement.

Oil has been in a recovery mode lately, perhaps driven by expectations of strong fuel demand due to the start of the summer driving and vacation season, said Charalampos Pissouros, analyst at broker XM.

Worries over U.S. interest rates remaining elevated for a longer period contributed to a weekly loss for crude last week. Higher rates boost the cost of borrowing, which can dampen economic activity and demand for oil.

Despite the indisputably brighter mood seen in the last two days, interest rate concerns will most plausibly act as a brake on further attempts to send oil prices meaningfully higher in the…